How to Do Production Planning and Control

3344 Words Jan 20th, 2013 14 Pages
Production, Planning and Control
Dr. Sindhuja

• The most important business module – Production. Why?...

• The ultimate objective of production planning and control, is to contribute to the profits of the enterprise. • this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. • Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines • and to provide the means for ensuring the operation of the plant in accordance with these plans.

Components of PP
• SOP: Sales and operations planning • DRP: Distribution Requirements Planning • MRP: Materials Requirement
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• It is tightly integrated with modules such as MM and SD thru the use of MRP which is also part of PP

Flow of Production Planning
Customer order management Demand management


Purchase requisition

Planned order



Define work center


Goods issue

Release order

Order confirmation

Order settlement

Flow of PP
• Demand generation thru demand management calculates the quantities to produce and the time for the final assembly • data from demand management is transferred to MRP. The data from demand mgt can come from Customer Sales Order (firm) or Planned Order (forecast).

• MRP checks for the availability of material at various stages of BOM.
– In case material is not available MRP generates planned order and Purchase requisition for production of components in house and procurement from vendor respectively.

• The planned orders are converted into production order by the planner and the purchase requisition are converted into purchase order by the purchaser.

• Production in charge converts the planned order to production order and carries out the production activities once the order is released for production. • Production is carried out as per the operation steps provided in the routing. • Work centers are also mentioned with each operation in the routings where these operations are to be carried out. • Once the
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